Thoratec, a developer of device-based mechanical circulatory support therapies for heart failure, has sold its International Technidyne Corporation (ITC) division to an affiliate of Warburg Pincus, pursuant to a definitive stock purchase agreement of approximately $55 million. ITC develops products for hemostasis management and point-of-care testing.
"We believe that this transaction provides a positive outcome for all parties, enabling Thoratec to focus our attention and resources on our … VAD [ventricular assist device] business, led by the HeartMate II," said Gary F. Burbach, president and CEO of Thoratec.
The Pleasanton, Calif.-based Thoratec said it received a payment of $55 million in cash upon the closing of the transaction, and beginning in 2011, ITC will no longer appear in Thoratec's financial statements. For the 2010 fourth quarter, a partial period of ITC's results will continue to appear as a discontinued operation in Thoratec's generally accepted accounting principle (GAAP) and non-GAAP income statements, where the business has been reported since the second quarter of 2010.
Bank of America’s Merrill Lynch acted as exclusive financial advisor and Latham & Watkins acted as legal counsel to Thoratec.